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FED ERAL RESERVE BANK O F NEW YO RK C irc u la r No. 4 3 6 8 1 S eptem ber 13,1956 J Fiscal Agent of the United States Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated September 20, 1956 Maturing December 20, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow ing is th e te x t o f a notice published to d a y : F O R R E L E A S E , M O R N IN G N E W S P A P E R S , TREA SU R Y D EPA R TM EN T T hursday, September 13, 1956. W ashington T he T reasury D epartm ent, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for T reasury bills m aturing September 20, 1956, in the am ount of $1,600,241,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated September 20, 1956, and will mature December 20, 1956, when the face amount will be payable w ithout interest. T hey will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving time, Monday, September 17, 1956. Tenders will not be received at the T reasury D epartment, W ashington. Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. I t is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. O thers than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in invest m ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on September 20, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing September 20, 1956. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. T he income derived from T reasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. F or purposes of taxation the amount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418, Revised, and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. T h i s B a n k w ill r e c e iv e t e n d e r s u p t o 1 :3 0 p .m ., E a s t e r n D a y l i g h t S a v i n g t im e , M o n d a y , S e p t e m b e r 17, 1 9 5 6 , a t t h e S e c u r i t i e s D e p a r t m e n t o f i ts H e a d O ffic e a n d a t i t s B u f f a lo B r a n c h . P l e a s e u s e t h e f o r m o n t h e r e v e r s e s id e o f t h i s c i r c u l a r t o s u b m i t a t e n d e r , a n d r e t u r n i t i n a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B i ll s .” T e n d e r s m a y b e s u b m i t t e d b y t e l e g r a p h , s u b j e c t t o w r i t t e n c o n f i r m a t i o n ; t h e y m a y n o t b e s u b m i t t e d b y t e l e p h o n e . P a y m e n t f o r th e T re a su ry bills ca n n o t be m ade b y cred it th ro u g h th e T r e a s u r y T a x and L o a n A c c o u n t. im m e d ia te ly available fu n d s or in m a tu rin g T r e a s u r y bills. S e ttle m e n t m u s t be m ade in cash or o th er A lfred H a yes, President. R e s u lts o f la s t o ffe rin g o f T r e a s u r y bills ( 9 1 - d a y b ills d a te d S e p te m b e r 13, 1 9 5 6 , m a tu r in g D e c e m b e r 13, 1 9 5 6 ) T otal applied f o r ......... $2,385,426,000 T otal accep ted ............. $1,600,483,000 (includes $293,765,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price....... 99.300 Equivalent rate of discount approx. 2.770% per annum Range of accepted competitive bids: (Excepting one tender of $1,000,000) H ig h ................... 99.312 Equivalent rate of discount approx. 2.722% per annum Low ................... 99.295 Equivalent rate of discount approx. 2.789% per annum (87 percent of the am ount bid for at the low price was accepted) Federal Reserve District .... New Y o r k ................. .... Philadelphia ........... Cleveland ................. Richmond ................. Chicago ..................... St. Louis ................... Minneapolis ............. Kansas City ............. San Francisco ......... T o t a l ....................... .... Total Applied for $ 36,264,000 1,735,969,000 29,342,000 71,171,000 25,564,000 60,514,000 231,487,000 25,703,000 15,478,000 59,740,000 46,298,000 47,896,000 $2,385,426,000 Total Accepted $ 24,264,000 1,066,271,000 14,342,000 65,521,000 25,564,000 59,975,000 170,837,000 24,903,000 15,078,000 53,924,000 40,908,000 38,896,000 $1,600,483,000 ( over) 36 A IM P O R T A N T — I f y o u desire to b id on a com petitive basis, fill in r a te p er 100 an d m a tu r ity v a lu e in p aragrap h h ead ed '‘C om p etitiv e B id .” I f y o u d esire to b id on a noncom petitive basis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h headed " N o n c o m p e titiv e B id.” DO N O T fill in both paragraphs on one fo rm . A separate ten d er m u st be u sed f o r ea c h bid, e x c e p t th a t banks su b m ittin g bids on a c o m p e titiv e basis f o r th e ir o w n and th e ir cu sto m ers’ a ccou n ts m ay su b m it one ten d er f o r th e t o ta l a m o u n t b id a t ea ch p rice, p ro v id ed a lis t is a tta c h e d sh o w in g th e nam e o f each b id d er, th e a m o u n t b id f o r his a c c o u n t, an d m ethod o f p aym en t. Form s f o r th is purpose w ill be fu r n ish e d u p on req u est. No. TENDER FOR 91 -D A Y TREASURY BILLS D a te d Septem ber 2 0 , 1956 To M a tu rin g D ecem b er 2 0 , 1956 Dated at F ederal R eserv e B a n k o f N e w Y o rk , Fiscal A gent of the United States. .1956 C O M PE T IT IV E B ID N O N C O M P E T IT IV E B ID Pursuant to the provisions of Treasury Department Circular Xo. 418. Revised, and to the provisions of the public notice on September 13, 1956, as issued by the T reasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418. Revised, and to the provisions of the public notice on September 13, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s * for a (R a te per 100) total amount of $— ______________ (m aturity value) of the T reasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made at your Bank, on the date stated in the public notice, as indicated below : for a total amount of ( N o t to e x c e e d $200,000) amounting t o ____________$ (m aturity value) of the T reasury bills therein described, at the average price (in three decimals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender of m aturing T reasury bills amounting t o ........................$----------------------------- □ □ □ __By surrender of m aturing T reasury bills By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, fo r example, 99.925. The T reasury bills for which tender is hereby made are to be dated September 20, 1956, and are to m ature on December 20, 1956. T his tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” Name of Bidder .............................................................................................................................. ( P le a s e p r i n t ) B y .......... (O fficial s i g n a t u r e r e q u ir e d ) ( T itle ) Street Address (C ity , T o w n o r V illa g e , P . O. N o „ a n d S ta te ) If this tender is subm itted by a bank for the account of a custom er, indicate the customer’s namp on line below: (N a m e o f C u s to m e r ) (C ity , T o w n or V illa g e , P . O. N o ., an d S ta te ) IM P O R T A N T IN S T R U C T IO N S : 1. N o tender for less than $1,000 will be considered, and each tender m ust be for an even multiple of $1,000 (m aturity value). 2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora tion authorized to m ake the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m ember of the firm, w ho should sign in the form “..--------- ----------- --------------------------- ---------------- - a copartnership, by ............................................... ................. ................................____, a member of the firm.” 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and rccognized dealers in investment securities. T enders from others must be accompanied by paym ent of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Paym ent b y credit through Treasury T a x and Loan A ccount w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1368-a Federal Reserve Bank of St. Louis ( ove * )
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